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China Southern to leave Sky Team (and to join OneWorld soon)?
China Southern filed a notice to Hong Kong Exchange. It seems it indicates it will establish new partnerships.. It would be a great news if it can join OWA. Current OWA coverage of China is close to nothing (except few codeshare BA has with China Southern).
This announcement is made by China Southern Airlines Company Limited (the “Company”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The board of directors (the “Board”) of the Company wishes to inform its shareholders and potential investors that, based on the needs of the Company’s development strategy and to better align with the new trend of cooperation model in the global aviation industry, the Company decided not to renew its SkyTeam Membership Agreement from 1 January 2019 and will complete the transition arrangements in 2019. During the transition period, the Company will work closely with SkyTeam on a cooperative process to ensure a sound transition for customers and partners. The Company will explore the possibilities to establish new partnerships with advanced airlines around the world, promote bilateral and multilateral cooperation and provide quality services to passengers around the world. The Company is of the view that the commercial decision mentioned above will not have any material impact on the business operations of the Company. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company. |
On its official Weibo accont (twitter equivalent in China), it says it will improve the cooperation with American Airline... i guess it will be in OWA sooner or later!
https://cimg6.ibsrv.net/gimg/www.fly...4a6ce1e74d.jpg |
And on a flight search from LHR to CAN via PVG you get China Southern on the BA ticket. Don't know if that is new but I welcome it. I'm trying southern for the first time in a few weeks.
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Interesting, especially given WW thinks that QR will be leaving soon.
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CX has veto authority in OWA so I see them joining to be a problematic situation. The two hub cities are not too far apart and compete for connecting traffic. Considering CX's financial and operational "frustrations" at the current time I doubt they'd welcome a direct competitor.
Expanding codeshare operations with BA & AA would be smart to drive traffic considering CZ's domestic & regional operations out of CAN & to lesser but not unsubstantial extent PVG & PEK. |
Originally Posted by Yoshi212
(Post 30433911)
CX has veto authority in OWA so I see them joining to be a problematic situation. The two hub cities are not too far apart and compete for connecting traffic. Considering CX's financial and operational "frustrations" at the current time I doubt they'd welcome a direct competitor.
Expanding codeshare operations with BA & AA would be smart to drive traffic considering CZ's domestic & regional operations out of CAN & to lesser but not unsubstantial extent PVG & PEK. |
Originally Posted by Yoshi212
(Post 30433911)
CX has veto authority in OWA so I see them joining to be a problematic situation. The two hub cities are not too far apart and compete for connecting traffic. Considering CX's financial and operational "frustrations" at the current time I doubt they'd welcome a direct competitor.
Expanding codeshare operations with BA & AA would be smart to drive traffic considering CZ's domestic & regional operations out of CAN & to lesser but not unsubstantial extent PVG & PEK. |
Originally Posted by muishkin
(Post 30447277)
CZ already competes with CX despite not being in the same alliance. Keep your friends close, your enemies even closer.
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From the South China Morning Post:
China Southern Airlines wants to become the world’s biggest carrier in the next three years and does not plan to seek an alliance with any of the industry’s major groups before 2021. Instead, the Guangzhou-based airline has opted for tie-ups with a handful of major carriers after quitting Skyteam, one of the big three clubs that most established airlines opt to join. ... Oneworld reiterated it was not in talks to add China Southern, which is the mainland’s largest airline, to its elite membership. |
QR also denied joining OW the day before official announcement, so things can be changed overnight especially in China. Nevertheless, what CZ is doing makes good commercial sense for now.
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Since BA has announced its plan to move to new airport in PEK (where CZ is heavily invested), I'm willing to bet that codeshares and/or a formal partnership are in the works. The same goes for other OW carriers (i.e. likely all except for CX and KA) that switch to PKX. While this may well piss off CX, they aren't exactly in a position to throw stones.
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